Jeff Mohlenkamp, CPA Director Department of Administration

 Difficult to ID common goals and coordinate efforts  Limited focus on results 2

 Department – Division – Budget Account  Budget Accounts broken into expenditure categories  Budget Account Names and expenditure categories do not reveal much regarding what work is performed  Performance Indicators are prepared at the Budget Account level  Inconsistently used by management  Even less frequently by key decision makers 3

 It is difficult to identify agencies with common goals and therefore hard to coordinate efforts  Silos form easily as the structure does not allow clarity regarding what work is completed or the goals and objectives of the organization 4

 Improve transparency to decision makers and public  Link government activities to achievement of objectives  Reduce silos and identify common objectives  Provide platform for improvement in funding and budgeting decisions  Measure the efforts of state government to determine whether they make a difference 5

 Originated in late 1940s at federal level for Defense  Guided by the federal Government Performance and Results Act (GPRA) enacted in 1993  By 1990s half of the states are using performance indicators  As of 2009, only 13 of the states are not using Performance Based Budgeting in some manner  In 2010 Nevada implemented Priorities of Government Process 6

 State of Utah began in 2009  Performance measures based on department- specific critical areas of desired outcomes  Balanced Scorecard focuses on strategic planning, performance management, state agency collaboration, and discovering enterprise innovation opportunities  Commonwealth of Virginia began in 1995  Includes metrics on inputs, outputs and outcomes  Online scorecard has supported targeted budget reductions 7

 Priorities of Government initiated during 2012/2013 budget preparation  AB 248 Passed by 2011 Legislature continues movement  Support from the Legislature, Governor and all who testified 8

 Builds on foundation established under the Priorities of Government initiative  PPBB has a number of system advances to make it easier for financial and budget staff - to be discussed more in the afternoon  We significantly advance the ability to inter- connect activities performed by State government 9

 Summary of the long-term performance goals for core governmental functions  Explanations of how proposed budget will fund government so progress is made toward goals  Sufficient to help analyze costs and benefits of programs and determine spending priorities 10

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 The Governor directed the Budget Division to move forward with a budget design to increase accountability and transparency  The Governor involved the entire cabinet in establishing Objectives tied to Core Functions of government  Objectives advance one or more of the Administration’s Strategic Priorities 12

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14 Business Development & Services Infrastructure and Communications Education and Workforce Development Public Safety Health ServicesResource Management Human ServicesState Support Services Core Functions of Government

15 PPBB Objectives link to Core Functions Core Function Objective

16 PPBB Objectives link to Core Functions Health Services Core Function Prevention Objective Wellness Objective Mental Health Objective

Objectives  Objectives are high level initiatives the state is trying to achieve  Some Objectives are not entirely within control of government  Government can play a key role in advancing all Objectives 17

 Health Services Core Function  Prevention Objective  Mental Health Objective  Public Safety Core Function  Reduce Crime Objective  Reduce Repeat Criminal Activity Objective 18

Benchmarks  Objectives are measured by Benchmarks  Benchmarks are high level measures of how well the state is doing at achieving or making progress on the state’s Objectives  State government cannot by itself control all Benchmarks however it should play a key role in all  Benchmark parameters tie to national data and historical data (When available) 19

 Health Services Core Function  Mental Health Objective  Suicide Rate Benchmark  Inpatient Readmissions Benchmark  Public Safety Core Function  Reduce Crime Objective  Violent Crime Benchmark  Offender Program Success Benchmark 20

21  8 Core Functions  56 Objectives  148 Benchmarks A complete listing is available on the Budget Division Website

22 Core Function ObjectiveActivity Objective PPBB Activities link to Objectives

Objective Activities Tie to an Objective 100% 50% 75% 100% 25% Medicaid Activity Health Division Activity Corrections Activity Higher Ed Activity K - 12 Activity Mental Health Activity 23

Health Services Core Function Mental Health Objective Department of Education Activity Department of Corrections Activity Mental Health Division Activity 24

Health Objective Education And Workforce Development Objective Public Safety Objective 75% 50% 100% 25% 100% Mental Health Developmental Services Mental Health Activity Health Objective 25

Performance Measurement  Activities are measured using Performance Measures  Up to three measures per activity  Outcome measure is best  Efficiency measures used to determine cost effectiveness 26

 The next phase of PPBB requires careful review and evaluation of activities  This needs to be followed by an analysis of Performance Measures used  Tying Activities to Objectives will require direct attention of Directors and Administrators 27

 Budget Analysts will be contacting Directors to set up training for your department  Assistance in development of Performance Measures is available upon request 28

29 Questions or Comments? Jeff Mohlenkamp, CPA Director Department of Administration Blasdel Building, Room East Musser St. Carson City, NV Phone